DUBAI Nov 26 The Malaysia-based International Islamic Liquidity Management Corp (IILM) said it had expanded the number of primary dealers handling its Islamic bond programme to nine from seven, a step towards expanding cross-border trade in its sukuk.
In August the IILM, a consortium of central banks from Asia, the Middle East and Africa, conducted its first sukuk issue, selling $490 million of three-month paper.
The issue was designed to meet a shortage of highly liquid, investment-grade financial instruments which Islamic banks can trade to manage their short-term funding needs. This shortage has become a barrier to the further growth of Islamic finance.
On Tuesday, the IILM said it had conducted an auction to resissue the sukuk as they matured, at an average yield of 0.5571 percent. The reissue was fully subscribed.
Abu Dhabi Islamic Bank, AlBaraka Turk, CIMB Bank Bhd, Europe's KBL Private Bankers, Kuwait Finance House, Malayan Banking Bhd (Maybank) , National Bank of Abu Dhabi, Qatar National Bank and Standard Chartered Bank acted as primary dealers in the auction.